Fact: Grasshopper Production is a service provider of event management to the clients in film shooting industry and providing location for shootings as per the requirement of the clients. The services Include arranging locations for film shooting, transport and conveyance for clients, restaurant food service, hotel accommodation, manpower requirements, security agency services, plant and machinery, furniture and pendals. All these services are procured from the supplier within the state of Goa in the name of the applicant on payment of CGST and SGST wherever applicable from the company accounts and charged their clients for cost of supply of such Event Management.
Issue Involved: Whether our Event Management support services provided in Goa to a registered person in Maharashtra is governed u/s 12(7)(i) of the IGST Act, 2017.
Held: The Hon’ble AAR of Goa vide Advance Ruling No. GOA/GAAR/3 of 2018-19/2018-19/2269 dated September 20, 2018 stated that the event is held in more than one State or Union territory and a consolidated amount is charged for supply of services relating to such event, the place of supply of such services shall be taken as being in each of the respective States or Union territories in proportion to the value for services separately collected or determined in terms of the contract or agreement entered into in this regard or, in the absence of such contract or agreement, on such other basis as may be prescribed. Therefore, the applicant has provided service of event management to Gallani Enterprises who is registered in Mumbai and as per the provision of section 12(7)(i) the place of supply of service in case of registered person shall be the location of recipient of such services and hence, 18% IGST is applicable on such transaction.
Citation: [TS-580-AAR-2018-NT]